McKesson Prices $6.25B Senior Notes Offering

Ticker: MCK · Form: 8-K · Filed: Aug 26, 2024 · CIK: 927653

Sentiment: neutral

Topics: debt-offering, financing, notes

TL;DR

McKesson just raised $6.25B in debt across three note series due 2025, 2026, and 2029.

AI Summary

McKesson Corporation announced on August 26, 2024, that it has priced a public offering of $1.500 billion aggregate principal amount of 1.500% senior notes due 2025, $1.625 billion of 1.625% senior notes due 2026, and $3.125 billion of 3.125% senior notes due 2029. The company intends to use the net proceeds from the offering for general corporate purposes, which may include funding working capital, capital expenditures, and potential acquisitions.

Why It Matters

This significant debt issuance by McKesson indicates a strategic move to secure long-term funding, potentially for growth initiatives or to refinance existing debt, impacting its capital structure and future financial flexibility.

Risk Assessment

Risk Level: low — The filing is a standard debt offering announcement with no immediate negative implications for the company.

Key Numbers

Key Players & Entities

FAQ

What is the total principal amount of the senior notes being offered by McKesson?

McKesson Corporation is offering an aggregate principal amount of $6.25 billion in senior notes, comprised of $1.500 billion due 2025, $1.625 billion due 2026, and $3.125 billion due 2029.

What are the interest rates for the different tranches of senior notes?

The senior notes have coupon rates of 1.500% for the 2025 notes, 1.625% for the 2026 notes, and 3.125% for the 2029 notes.

What is the stated purpose for the net proceeds from this offering?

McKesson intends to use the net proceeds for general corporate purposes, which may include funding working capital, capital expenditures, and potential acquisitions.

When was the date of the report for this 8-K filing?

The date of the report for this 8-K filing is August 26, 2024.

What is the maturity date for the largest tranche of senior notes issued?

The largest tranche of senior notes, totaling $3.125 billion, is due in 2029.

Filing Stats: 839 words · 3 min read · ~3 pages · Grade level 12.4 · Accepted 2024-08-26 08:04:26

Key Financial Figures

Filing Documents

01

Item 7.01 Regulation FD Disclosure On August 26, 2024, McKesson Corporation ("Company") issued and posted on its website (https://www.mckesson.com/About-McKesson/Newsroom/Press-Releases/ and https://investor.mckesson.com/news/default.aspx) a news release announcing that it signed a definitive agreement to acquire a controlling interest in Community Oncology Revitalization Enterprise Ventures, LLC ("Core Ventures"). A copy of that news release is attached hereto as Exhibit 99.1.

01

Item 8.01 Other Events. On August 25, 2024, the Company entered into a unit purchase agreement ("Purchase Agreement") with Florida Cancer Specialists & Research Institute, LLC ("Florida Cancer Specialists") and Core Ventures to acquire a controlling interest in Core Ventures. The Company has committed to purchase an approximately 70% controlling equity interest for approximately $2.49 billion in cash, subject to certain customary adjustments. The closing of the transactions contemplated by the Purchase Agreement are subject to the satisfaction of customary closing conditions, including regulatory review. Florida Cancer Specialists owns and operates a medical practice that offers and provides, at various locations in Florida, professional medical services in oncology and ancillary activities related thereto. Core Ventures is engaged by Florida Cancer Specialists as its exclusive provider of non-clinical business and other administrative services. Cautionary Statements: Except for historical information, statements in this report regarding the Company's proposed acquisition and related arrangements constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve risks and uncertainties that could cause actual results to differ materially from those in those statements. It is not possible to identify all such risks and uncertainties. The reader should not place undue reliance on forward-looking statements, which speak only as of the date they are first made. Except to the extent required by law, the company undertakes no obligation to publicly update forward-looking statements. We encourage investors to read the important risk factors described in the Company's most recent Form 10-K filed with the Securities and Exchange Commission. These risk factors include, but are not limited to: we may be unable to obtain necessary regulatory approvals; we may not

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 99.1 News release i ssued by the Company dated August 2 6 , 2024 104 Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: August 26, 2024 McKesson Corporation By: /s/ Britt J. Vitalone Britt J. Vitalone Executive Vice President and Chief Financial Officer

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